Cirque du Soleil has, like most businesses, suffered a heavy blow due to COVID-19. The company terminated 3,500 staff contracts in a bid to avoid bankruptcy.
The show visited South Africa at the end of 2012 and in March of 2013. The group is known the world over for its mesmerising acts and human artistry. Cirque du Soleil consists of circuses as well as musicals that traverse the globe. The musicals include Michael Jackson One and The Beatles Love.
With the onset of the global coronavirus pandemic, shows have been cancelled and according to BBC, the Canadian-based group has had to let go of 95% of its staff (3,480 jobs).
The firm has come to an agreement with existing shareholders, who will take over the liabilities and invest $300 million into the business.
‘With zero revenue since the forced closure of all of our shows due to Covid-19, the management had to act decisively,’ said Daniel Lamarre, President and CEO of Cirque du Soleil Entertainment Group.
He continued: ‘The Purchase Agreement and SISP provide a path for Cirque to emerge from CCAA protection as a stronger Company. The robust commitment from the Sponsors – which includes additional funds to support our impacted employees, contractors and critical partners, all of whom are important to Cirque’s return – reflects our mutual belief in the power and long-term potential of our brand. I look forward to rebuilding our operations and coming together to once again create the magical spectacle that is Cirque du Soleil for our millions of fans worldwide.’
In a statement the company wrote: ‘Under the terms of the proposed Purchase Agreement, the Sponsors will inject US$300 million of liquidity into the restructured business to support a successful restart, provide relief for Cirque du Soleil’s affected employees and partners, and assume certain parts of the Company’s outstanding liabilities, including with respect to ticketholders affected by the cancellation of the shows.’
In a statement on Instagram, Cirque du Soleil said: ‘As we move forward, we know that you will have questions and we will continue to share information with you. If you already have tickets to a Cirque du Soleil show, these remain valid and you will be receiving an email providing further instructions. For all other questions, please refer to the FAQ section of our website.’
Image credit: Instagram/ cirquedusoleil
